SA Reserve Bank sounds alarm on threat of sanctions

SOUTH Africa’s central bank has warned of dire consequences should the country face censure due to its stance on Russia’s invasion of Ukraine.

At worst, secondary or indirect sanctions could be imposed on the country and lead to a sudden halt to capital inflows and increased outflows, the bank said in its latest financial stability review published on Monday.

It cautioned that South Africa’s financial system would be unable to function if its ability to make international payments in dollars was impeded.

More than 90% of South Africa’s international payments are currently processed through the Society for Worldwide Interbank Financial Telecommunication system, Herco Steyn, the lead author of the report told reporters.

“Should South Africa be banned from SWIFT as a result of secondary sanctions, these payments will not be possible,” he said.

South Africa has adopted what it says is a non-aligned stance toward the war in Ukraine and